News Releases

PUCN Rules on Sierra Pacific Power General Rate Case

May 27, 2004

Sierra Pacific Power Company
Contact: Faye I. Andersen
Phone: (775) 834-4822

For Immediate Release

Sierra Pacific Power Company, a wholly-owned subsidiary of Sierra Pacific Resources (NYSE: SRP), announced today that, effective June 1, overall electric rates in northern Nevada will increase by 5.2 percent. The company said the typical residential customer using 715 kilowatts hours of electricity will see an increase of approximately $6-to-7 per month.


The increase follows a ruling today by the Public Utilities Commission of Nevada (PUCN) on the company's general rate case in which a 6.3 percent overall increase was approved. This increase, however, was partially offset by a decrease previously scheduled to take effect on June 1, stemming from a previous deferred energy rate case.


In its recent general rate case, filed December 1, 2003, the company originally sought an annual revenue increase of $87.7 million. The annual amount approved by the PUCN was $46.7 million. Since the company's last general rate case two years ago, Sierra Pacific has invested more than $200 million in plant and infrastructure to serve its customers.


As a part of the rate case, the company had sought recovery of $95 million of the outstanding cost of the Piñon Pine project. This was intended to be a demonstration plant, which was jointly funded with the U.S. Department of Energy. In its decision, the PUCN granted recovery of $48 million over time. As a result of this decision, in the second quarter of 2004, Sierra Pacific expects to record a charge of approximately $47 million ($30 million after-tax), of costs associated with the Piñon Pine facility.


About Sierra Pacific Resources: Headquartered in Nevada, Sierra Pacific Resources is a holding company whose principal subsidiaries are Sierra Pacific Power Company, the electric utility for most of northern Nevada and the Lake Tahoe area of California, and Nevada Power Company, the electric utility for most of southern Nevada. Sierra Pacific Power Company also distributes natural gas in the Reno- Sparks area of northern Nevada. Other subsidiaries include the Tuscarora Gas Pipeline Company, which owns 50 percent interest in an interstate natural gas transmission partnership and several unregulated energy services companies.


Forward-Looking Statements: This press release contains forward-looking statements regarding the future performance of Sierra Pacific Resources and its subsidiary, Sierra Pacific Power Company, within the meaning of the Private Securities Litigation Reform Act of 1995. The actual amounts and specific timing of the second quarter charges may change as the company is still evaluating the impact of the PUCN's order. The Companies undertake no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.


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